cbi energy conference: jon bentley
Post on 07-May-2015
1.045 Views
Preview:
DESCRIPTION
TRANSCRIPT
© 2010 IBM Corporation
What will Smart Grids mean for Energy Users? Jon Bentley London, September 15th 2010
IBM Global Business Services | CBI Energy Conference
© 2010 IBM Corporation
IBM | Smarter Energy
2
2. Affordability keeping price rises to a minimum (2011+)
3. Emissions keeping within 2-4oC (34% by 2020, 80% by 2050)
Lets first remind ourselves of Why? we need Smart Grids
1. Security keeping the lights on (2016/17 – 2022/25)
© 2010 IBM Corporation
IBM | Smarter Energy
3
1. Demand managing down consumption increases
2. Efficiency reducing unnecessary consumption and loss
3: Generation reducing emissions from / dependency on fossil fuels
Which means we need these Outcomes? from Smart Grids?
4: Cost avoiding the need to build (even more) new capacity
5: Price reduced volatility from global (gas) markets
© 2010 IBM Corporation
IBM | Smarter Energy
4
2. Losses managing the network more efficiently to reduce distribution & generation losses and costs
1. Information informing consumer choice and influencing behaviour by showing them what they use
3: Incentives using price signals to increase perceived energy value and shift the shape of the demand curve
So How? are Smart Grids expected to help?
4: Automation providing tools / services to make it easier for energy users to manage their energy
5: Control direct demand management by utilities / ESCos to limit demand / shift time of day usage
6: Optimisation balancing increasingly variable and distributed generation and demand
© 2010 IBM Corporation
IBM | Smarter Energy
5
A Technical definition (slightly abridged)
“A Smart Meter is an advanced meter that records consumption in intervals of an hour or less and communicates that information at least daily via some communications network back to the utility for monitoring and billing purposes. Smart meters enable two-way communication between the meter and the central system”Wikipedia
© 2010 IBM Corporation
IBM | Smarter Energy
6
A Goals-based definition
“Smart metering is designed to provide utility customers information on a real time basis about their domestic energy consumption. This information includes data on how much gas and electricity they are consuming, how much it is costing them and what impact their consumption is having on greenhouse gas emissions." European Smart Metering Alliance
© 2010 IBM Corporation
IBM | Smarter Energy
7
Ofgem – Smart Metering prospectus 2010
“Smart grid can be defined as “an electricity network that can intelligently integrate the actions of all users connected to it - generators, consumers and those that do both - in order to efficiently deliver sustainable, economic and secure electricity supplies” Electricity Networks Strategy Group
© 2010 IBM Corporation
IBM | Smarter Energy
8
Reality check 1: We need to be clear on What? is a Smart Grid
Smart Meters
Intelligent Homes & Appliances
Smart Grid
Intelligent Network
© 2010 IBM Corporation
IBM | Smarter Energy
9
Smart Meters: 2012-2020 2016?
Smart Home: 2012? 2015+?
Smart Grid: 2020+?
Intelligent Network: 2015-2020?
Reality check 2: We need to be clear on When? we will get it
© 2010 IBM Corporation
IBM | Smarter Energy
10
SmartMetering
Smart Meters are the first step in a wave of change across the energy system
Improving billing accuracy
Reducing operational costs
Providing meaningful consumption information
Reducing overall and peak demand
Accelerate electric vehicle adoption
Enabling more micro-generation
Supporting implementation of smart grids
Improving efficiency of industry processes
Proactively managing customer debt
Utilising electric vehicle storage capability
Integrating intelligent devices and appliances for demand management
Enabling increased use of intermittent energy supplies
Services beyond the meter
Operation of “virtual power plants”
© 2010 IBM Corporation
IBM | Smarter Energy
11
Achieving these changes requires much greater engagement with customers
SmartMetering
Providing meaningful consumption information
Reducing overall and peak demand
Accelerate electric vehicle adoption
Enabling more micro-generation
Proactively managing customer debt
Utilising electric vehicle storage capability
Integrating intelligent devices and appliances for demand management
Enabling increased use of intermittent energy supplies
Services beyond the meter
Operation of “virtual power plants”
Increasing customer… …behaviour changes
…investments
…collaboration
© 2010 IBM Corporation
IBM | Smarter Energy
12
Near-term Gradual increase in energy services and tariff structures sustained reduction in emissions, demand pattern shift, willingness to “co-create” change with utility
Roll-out High consumer engagement with information and tools behaviour change, reduced usage, lower bills and GHG emissions, closer relationship with energy and utility
In 5 years? New technology-based utility / customer business models automated demand, EV and microgen management, willingness to allow utility control for mutual benefit
What should be the Impact? on energy consumers?
© 2010 IBM Corporation
IBM | Smarter Energy
13
Near-term Choice in terms of tariffs, time of use (ToU) pricing, energy saving services higher bills for those that don’t engage? Mistrust?
Roll-out Impact depends on consumer engagement with the information provided zero for a large number of people? Ambivalence?
In 5 years? Dynamic ToU pricing, programmable usage, utility-managed demand & microgen management reduced usage and (relatively) lower bills at the sophisticated, educated, wealthy end of the market?
What could be the Impact? on energy consumers?
© 2010 IBM Corporation
IBM | Smarter Energy
14
2 Customer interest and engagement typically fades and information-driven change is in any case limited (6-10%) – so automation and price-signals are needed to drive and sustain increased benefits, which requires greater levels of trust and customer participation
1 Customers can – and do – seriously derail Smart Meter programmes when trust breaks down
2 Key Lessons from other Smart Metering trials and programmes
© 2010 IBM Corporation
IBM | Smarter Energy
15
Take the customer with you – build trust
Design for future solutions - implement in steps
Co-create solutions that work for customers - share value
jon.z.bentley@uk.ibm.comwww.ibm.com/think/uk
Copies of this presentation are available on request
top related